Non-taxable salary components increased to RSD 15,000 – Beginners in business to be exempt from income tax and contributions from October 2018

The non-taxable salary components increased to RSD 15,000 on January 1, 2018, an increase by RSD 3,210.

The biggest effect of the amendment to the Law on Income Tax, by which the non-taxable salary components have been increased, should be felt by the 350,000 workers in Serbia being paid the minimum wage, the Government of Serbia points out.

To the end of continuing the fight against unemployment, exemptions for new employments will remain in effect until the end of 2019, with entrepreneurs being given the right to have 65% to 75% of the paid taxes and contributions repaid.

The key new feature in the amendments to the tax laws adopted in late 2017 is the implementation of incentives for beginners in business, who will be exempt from paying income tax and contributions for mandatory social insurance in the year of the foundation of the company and the next year.

The measures are to start being implemented in October 2018 and will pertain to entrepreneurs in the regime of personal income payment, the Government says.

Vlada Republike Srbije

Government of Serbia

non taxable salary components

Law on Income Tax

income tax

salaries in Serbia

wages in Serbia

minimum wage

minimum price of labor

exemptions for employment

unemployment in Serbia

repayments of taxes and contributions

repayment of income tax

contribution

contributions

tax payment

contribution payment

social insurance

founding a company

starting a business

non taxable salary

non taxable salaries

incentives for beginners in business

incentives for entrepreneurs

Law on Mandatory Social Insurance Contributions

amendments to the Law on Tax on Income of Legal Persons

amendments to the Law on Mandatory Social Insurance Contributions